U.S. Portfolios

The Tarpon Folio is managed for long-term growth using value investing principles. Our portfolio manager Cale Smith has nearly all of his family’s life savings invested in the Tarpon Folio.

The Tarpon Folio invests in companies that have underappreciated strengths trading at inexpensive valuations. We are seeking companies with attractive owner’s earnings, a large margin of safety and a significant chance for large gains over the long-term. We pay particular attention to the company’s financial fundamentals and competitive positioning.

We also look for opportunities among companies experiencing forced selling by their current investors, which might include spin-offs, low-priced companies, broken IPOs, and/or companies emerging from bankruptcy.

We do not attempt any economic forecasting in the Folio, nor do we obsess over short-term results – whether good or bad. We also do not unnecessarily limit ourselves to specific size companies nor industries.

We do stick to companies and industries we know and understand, however, including the consumer discretionary sector, media and transportation companies, select financial companies, certain technology subsectors and telecommunications.

Fees start at 0.95% of assets on an annual basis with an associated brokerage fee charged in addition. Specifics can be found on pages 4 and 5 of our Form ADV Part 2. Turnover, taxes and trading are minimized in the fund.

The Gecko Folio is managed to maximize income as opposed to capital appreciation. Our portfolio manager Cale Smith also invests his own money in the Gecko Folio.

The Gecko Folio contains stocks and bonds. More specifically, the Fund holds a concentrated portfolio of publicly traded oil and gas pipeline companies called MLPs, or master limited partnerships, and closed-end bond funds.

Our criteria for equities included in the Gecko Folio include dependable earnings, a large margin of safety, a wide moat around the business and a safe, attractive and growing dividend. Bonds and closed-end bond funds require additional analysis.

The Gecko Folio is built solely for taxable accounts, as opposed to tax-deferred accounts like an IRA. Owning MLPs in a tax deferred account can create issues come tax time, so we steer investors away from doing so.

Fees start at 0.95% of assets on an annual basis with an associated brokerage fee charged in addition. Specifics can be found on pages 4 and 5 of our Form ADV Part 2. Turnover, taxes and trading are minimized in the fund.

International Portfolios

The Frigate Folio is an international capital appreciation portfolio managed by Lauretta Reeves, CFA, and launched on July 1, 2013.

The Frigate Folio invests in international stocks via ADRs (American Depository Receipts) or equivalents that are available for purchase on US exchanges or over-the- counter. Stocks selected are perceived to be trading at attractive valuations versus their history and/or their sector and to display strong or improving fundamentals. Current price divided by expected earnings per share (forward p/e ratio) is a key metric, although price to cash-flow, price to book and yield may be considered. To calculate future earnings, the portfolio manager relies on management’s estimates, third-party research and independent investigation.

The Treasure Harbor Folio is an international income portfolio managed by Lauretta Reeves, CFA, and launched on October 1, 2013.

The Treasure Harbor Folio invests in a concentrated number of international stocks via ADRs (American Depository Receipts) or equivalents that are available for purchase on US exchanges or over-the-counter. Stocks selected are expected to generate dividend yield greater than the broad international indices. Expected dividends are calculated utilizing management’s estimates, third-party research and the portfolio manager’s investigation. The Treasure Harbor Folio is constructed from the bottom-up with country and industry diversification a result of the research process.

The Yellowtail Folio is an international small- and mid-cap (“smid-cap”) portfolio managed by Lauretta Reeves, CFA, and launched on November 13, 2014.

Yellowtail invests in a concentrated number of international small capitalization stocks via purchase in local country exchanges. Stocks selected are expected to generate greater capital appreciation than comparable international indices. Stocks selected are perceived to be trading at attractive valuations versus their history and/or their sector and to display strong or improving fundamentals. The Yellowtail Folio is constructed from the bottom-up with country and industry diversification a result of the research process.

The term Spoke Fund® is a name we coined which is short for “hub-and-spoke.”

Imagine a first grader drawing a picture of the solar system. The sun is the hub – nearly all of the life savings of our portfolio manager’s family, in this case – and the spokes lead to all the planets, which are our investors’ accounts. Any trades in the core portfolio are executed simultaneously through the spokes through all other accounts. Those accounts are secure, fully insured, and held by an independent company led by a former commissioner of the SEC.

In contrast, mutual funds and hedge funds take a “pooled” approach to managing money, lumping all investors’ money together in a giant pool. Among numerous problems, including high fees and conflicts of interest, investors in those kinds of funds also have zero real-time visibility into what’s going on with their money, and why.

Spoke Funds are similar to SMAs, or separately managed accounts, although there are some key differences – most notably the amount of net worth a manager has at stake. Other differences can be found here, too.

A Spoke Fund ® is not a fund in the traditional sense. We think it’s better. When you invest in mutual fund or hedge fund you’re actually buying shares or interest in the fund itself. In a Spoke Fund ®, you’re buying shares in the same publicly traded companies that everyone else owns.

Those shares you own are held in a separate account, which means your portfolio manager has precise control over taxes and costs and has the ability to run social responsibility screens just for you. It also means you can vote on corporate issues at the companies you own.